What to do with my Army AFPS 75 pension?

nwl

With all the Pensions controversy lately, I've been seriously looking into my pension and saving for my future.

I currently work for the Home Office and so have a civil service 'premium' pension plan, but I also paid into an Army pension (AFPS 75) for over 6 years. I believe this is referred to now as a 'preserved pension'.

Just looking for advice really on what to do with it/if I can do anything with it. I've tried but failed to find out how much it is worth and what the benefits are of it staying where it is etc.

The Civil service pensions department bamboozled me with strange words and phrases that made no sense when I asked if I could join the pensions together and whether this would be benefficial etc.

I have another 30+ years to work so would like to know if there is a way I can get a better return.

Any advice would be appreciated. Thanks.

dunstonh

With all the Pensions controversy lately

Most of which are actually positive and beneficial changes

Just looking for advice really on what to do with it/if I can do anything with it.

Why do anything with it? Its doing its job and alternatives are likely to be worse.

I've tried but failed to find out how much it is worth

That wouldnt help you as it is defined benefit. Its the package of benefits it pays that is important. Not a hypothetical value.

The Civil service pensions department bamboozled me with strange words and phrases that made no sense when I asked if I could join the pensions together and whether this would be benefficial etc.

They are not allowed to give advice. They can only offer information. If you dont understand the information then you should seek advice. However, the advice is statistically likely to say leave it where it is.

I have another 30+ years to work so would like to know if there is a way I can get a better return.

Your pension hasnt anything to do with rate of return. Dont think of it as savings or investments.

Your scheme booklet will explain what you get along with the last statement of benefits you received. Generally the booklets explain things well so do take a look at those.

moonrakerz

If you have any sort of Armed Forces pension - keep it just as it is !

I left the RN 25 years ago, I just worked out that my pension has risen by 139% in that time, RPI has risen by 128% in that time - well worth having.

RichandJ

moonrakerz wrote: »

If you have any sort of Armed Forces pension - keep it just as it is !

I left the RN 25 years ago, I just worked out that my pension has risen by 139% in that time, RPI has risen by 128% in that time - well worth having.

Probably because part of your deferred pension was GMP, which on leaving 25 years ago, increases by 8.5% per tax year compound between leaving and retirement date. The remainder, known normally as 'excess', will have until 2010 increased by RPI, then probably by CPI thereafter.

Even with the probable switch to CPI, the guaranteed benefit would be very difficult to beat.

Not possible to tell if nwl has a GMP element as he didn't give leaving date but unless he had pre 6/4/97 service he won't.

jaka1234

am i reading this wrong? i joined the army in 1972 and served till 1978. will i only get a pension for the years from 75-78. i don't think that will be worth very much.

GlynD

jaka1234 wrote: »

am i reading this wrong? i joined the army in 1972 and served till 1978. will i only get a pension for the years from 75-78. i don't think that will be worth very much.

I think the pension covers the whole term of service after you've done the first two years. Check with your regimental association or the RBL. (Unless some happy chappy comes along here who knows better than I).

Claim it when you're 60. It might not be a fortune but it's yours and you've earned it.